Reportedly, as many as 16 people have been killed and more than 30 injured.
A rescue operation by the Army is underway.
Further details are awaited.
This incident comes days after as many as seven people were killed and fifteen others injured after a group of terrorists opened fire on a bus carrying 17 pilgrims from Baltal to Mir Bazar earlier last week.
The 90th and 40th battalions of the Central Reserve Police Force (CRPF) were deployed at the spot to prevent further untoward incidents thereafter.
Only this morning one of the injured succumbed to her injuries taking the death toll to eight.
The brutal attack on the innocent pilgrims invited the wrath of all political parties, even as the entire world jointly condemned the incident.
Prime Minister Narendra Modi and President Pranab Mukherjee also strongly condemned the incident.
J-K Chief Minister Mehbooba Mufti summoned an emergency meeting of her cabinet to review the security situation across the state.
About Amarnath Yatra:
Amarnath cave is a Hindu shrine located in Jammu and Kashmir and is situated at an altitude of 3,888 m (12,756 ft). It is about 141 km from Srinagar. The shrine forms an important part of Hinduism and is considered to be one of the holiest shrines in Hinduism. Amarnath cave is surrounded by snowy mountains and is itself covered with snow most of the year except for a short period of time in summer when it is open for pilgrims.
(With inputs from agencies)